Taiwan Shares Fall Despite Ma Win

Taiwan shares are down 0.4% at 7154.87, off the 7258.84 intraday high, due to profit-taking on political relief after Beijing-friendly President Ma Ying-jeou won another term in Saturday’s election, says Capital Securities assistant Vice President Diana Wu.

“Investors tend to trim positions ahead of the market close from Jan. 19-29 for the Lunar New Year,” she said. “Uncertainties over the euro-zone crisis will continue to weigh on financial stocks.”

Grand Cathay Securities analyst Mars Hsu had said the Taiex could hit 7600 during trading Monday but would likely finish the day up only 1% to 2% for the day.

The Taiex has fallen 4% since mid-October, underperforming the regional MSCI Asia ex-Japan Index, which fell 2.9%, as challenger Tsai Ing-wen closed the gap with Mr. Ma in the polls. Credit Suisse attributed some of the underperformance to investor fear that a victory for the challenger could slow efforts to deepen Taiwan’s economic ties with China, which still considers the island a province.

Ms. Wu tipped the index in a 7100-7200 range for the session. Heavyweight Hon Hai is down 0.1% at NT$85.10, TSMC is down 2.2% at NT$75.80, Mega Financial is down 0.5% at NT$20.35 and First Financial is down 0.3% at NT$17.60.

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